B&G Foods Sells B&M and Joan of Arc Brands to Reduce Debt
Packaged-food maker B&G Foods, Inc. (BGS) has sold its B&M baked beans and brown bread brand alongside its Joan of Arc canned beans brand to McCall Farms. Financial terms of the transaction were not disclosed, but the company plans to direct all net proceeds toward reducing its long-term debt burden.
The sale is the latest step in a strategic portfolio overhaul aimed at improving profitability and lowering borrowing costs. B&G Foods previously shed its Green Giant U.S. frozen, Le Sueur U.S., and Don Pepino lines while acquiring higher-margin brands such as College Inn and Kitchen Basics. In the second quarter of 2026, net interest expense reached $38.5 million, up 7.5% year over year, while net sales fell 9.7% to $383.3 million and adjusted EBITDA grew 4.2% to $60.4 million.
Investors will be watching whether debt paydowns from asset sales can sufficiently lower interest expenses and stabilize financial flexibility. Future performance will likely hinge on organic sales growth in core brands, operational efficiency, and continued debt reduction.
Key points
- B&G Foods, Inc. (BGS) sold its B&M and Joan of Arc brands to McCall Farms for an undisclosed sum.
- Net proceeds from the sale will be used to pay down long-term debt.
- B&G Foods reported second-quarter 2026 net interest expense of $38.5 million, up 7.5% from the previous year.
- Q2 2026 net sales dropped 9.7% to $383.3 million, though adjusted EBITDA rose 4.2% to $60.4 million.
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How we writeDisclaimerQuestions and answers
Why did B&G Foods sell the B&M and Joan of Arc brands?
B&G Foods sold the brands to McCall Farms to generate net proceeds for paying down long-term debt, improving profitability, and strengthening its balance sheet.
How will B&G Foods use the proceeds from the brand sale?
The company plans to use all net proceeds from the sale to pay down long-term debt and lower its interest obligations.
What were B&G Foods' second-quarter 2026 financial results?
In Q2 2026, B&G Foods reported net sales of $383.3 million, down 9.7% year over year, while adjusted EBITDA rose 4.2% to $60.4 million and net interest expense increased 7.5% to $38.5 million.